Assessment of Innovations in Biochips (Technical Insights)
Deliverable Type: Technical Insights Reports
Date Published: 30 Mar 2009
Research OverviewResearch Overview Table of ContentsTable of Contents
Research Overview

This Frost & Sullivan research service titled Assessment of Innovations in Biochips (Technical Insights) analyzes the economic scenarios for biochip applications and the key driving forces and challenges and provides a comprehensive overview of solutions and technologies being developed in this domain. The study effectively maps the growth path for the biochip industry.

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Technology Overview

Technological Innovations Break New Ground and Bolster Competitiveness in the Biochip Market

The biochip industry comprises an integration of various platforms, including microarrays, microfluidics, and biosensors, which converge on account of the fundamental principle of economies of scale. The economies of scope merge well with the massive biological information that has been made available at the genetic and protein levels. Taken together, the biochip industry has a lot to offer in terms of being an effective support function for basic research. Economies of scale are of great consequence for the biochip market considering the competitive nature of the technologies in this space. "The scale of reactions that can be carried out on a biochip clearly has a dominant appeal in terms of acquiring popularity among users, and that in essence, affects the pricing strategies of companies in this arena," notes the analyst of this research service. "Fundamentally, users are looking at increased scalability of technology and whosoever is able to match the competency in scalability with effective pricing strategies would emerge as a winner."

Biochip manufacturers are differentiating themselves through technology with the emphasis revolving largely around the size of the chip, number of genes that can be accommodated, and throughput time. Costs escalate with the coverage of the technology; hence, there is a considerable impact on manufacturing costs and thereby, the utilization of resources. It is critical for companies to ensure optimum use of technology in order to ratchet down manufacturing costs significantly. Companies must resort to competitive collaboration to garner useful benefits from the technology. Acquisitions are appropriate in an industry wherein products are standardized and companies are vying for market share. "In the wake of economic recession, it is important for biochip companies to position and employ their resources accordingly," says the analyst. "Given that acquisitions are rampant in the space and funding around emerging technologies is largely limited, it is important for companies in the space to consolidate and focus on key business areas that can lead to marketable products in a short span of time so as to avail fiscal support." Differentiation in technology through healthy competition among rivals is going to be vital for the creation of diverse options for the customer. Eventually, while all companies strive to achieve monopolistic control of the market, from a technology perspective, it is likely to limit consumer choices. This is because it can create indiscriminate pricing and redundancy of technology with increased barriers of entry, which are expected to be the eventual fallout of stiff competition.

To sustain in this scenario, companies must pay more attention to strategic alliances and partnerships, which can expedite the overall penetration of the technology and enhance growth. At present, entry into the biochip industry may not be advisable on account of poor funding for new projects. The focus must be around strengthening core innovation capabilities, and more importantly, engaging in extensive university collaboration to build upon strengths and eliminate weaknesses. Pursuing such initiatives can ensure better acceptance of the technology once the economy recovers sufficiently to support the growth of new industries.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

  • Drug discovery
  • Biotechnology


The following technologies are covered in this research:

  • Genetic discovery
  • Hybridization
  • Stem cell

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